Beardsell downgraded to 'Sell' by MarketsMOJO

Beardsell, a microcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on the company's weak long-term fundamental strength, with an average Return on Capital Employed (ROCE) of 8.27%. Additionally, the company has shown poor long-term growth, with net sales only growing at an annual rate of 4.94% over the last 5 years.
One of the main concerns for Beardsell is its ability to service its debt, as indicated by a poor EBIT to Interest (avg) ratio of 1.46. Furthermore, with a ROCE of 15.1, the company's valuation is considered expensive with an enterprise value to capital employed ratio of 2.1. However, the stock is currently trading at a discount compared to its average historical valuations.

In the past year, Beardsell's stock has generated a return of 81.01%, while its profits have risen by 143.3%. This has resulted in a low PEG ratio of 0.1, indicating that the stock may be overvalued. On the positive side, the company has declared positive results for the last 11 consecutive quarters, with its PAT (HY) growing at an impressive rate of 118.80%.

Beardsell's stock is currently in a mildly bullish range, with its MACD and KST technical factors also showing bullish signals. The majority shareholders of the company are the promoters, and the stock has consistently outperformed the BSE 500 index over the last 3 years.

In conclusion, while Beardsell has shown some positive results in terms of profits and technical indicators, its weak long-term fundamentals and expensive valuation have led to a 'Sell' rating from MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.